Nubank Reports Strong Q3 Earnings

SAO PAULO (Reuters) – Brazilian digital lender Nubank's adjusted net profit more than doubled in the third quarter from a year earlier on a foreign-exchange neutral basis, beating analysts' estimates with record returns.

Nubank, backed by Warren Buffett, reported an adjusted net profit for the quarter ended in September of $592 million, exceeding the $559 million anticipated by analysts polled by LSEG.

Chief Financial Officer Guilherme Lago indicated that the increase in profitability was driven mainly by a greater number of active customers and higher average revenue per active customer, while costs of services and client acquisition changed little.

Nubank's annualized non-adjusted return on equity, a key profitability metric, stood at a record 30%.

Additionally, Nubank's credit portfolio grew approximately 47% year-on-year to $20.9 billion, while the 90-day-plus default ratio for loans in Brazil, its main market, reached 7.2%, up from 6.1% a year earlier and 7% in the second quarter.